Slide 1: Advantage Solutions Inc. Q2 2022 Earnings Presentation
ADVANTAGE SOLUTIONS INC. Q2 2022 Earnings Presentation August 9, 2022
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements Certain statements in this presentation may be considered forward -looking statements within the meaning of the federal securitie s laws, including statements regarding the expected future performance of Advantage's business. Forward-looking statements generally
Slide 3: Q2 Key Messages
Q2 KEY MESSAGES • Consumer goods demand signals (online and in-store) remain volatile • Delivered second quarter results largely in-line with expectations • Generated approximately 15% year-on-year revenue growth driven by: • In-store sampling and demonstration events up 49% year-on-year • Contribut
Slide 4: Q2 Results Demonstrate Continued Recovery
Q2 RESULTS DEMONSTRATE CONTINUED RECOVERY Revenues Adjusted EBITDA $ in millions. $ in millions. Y/Y growth 15% Y/Y growth $981 (11)% Total $850 Advantage $122 $108 % margin 14.4% 11.0% Q2'21A Q2'22A Q2'21A Q2'22A Y/Y growth 8% Y/Y growth $20 0 (20)% Sales $18 0 $16 0 $562 $604 $14 0 Segment $12 0 $
Slide 5: Healthy Revenue Trends Across Segments in Q2
HEALTHY REVENUE TRENDS ACROSS SEGMENTS IN Q2 • Solid revenue performance in Sales segment S A M P LI N G E V E N T C O U N T − Contributions from acquisitions − Recovery in international businesses − Retail merchandising growth +49% YOY − Mix challenged by growth in lower margin merchandising servic
Slide 6: 2022 Investment Activities
2022 INVESTMENT ACTIVITIES Talent Renovation Innovation Increased spending in wages, Accelerating investment in Investing to scale adjacent and recruiting and retention infrastructure, systems and tools complementary services, especially to help drive productivity and higher-growth, higher-margin da
Slide 7: Capitalization Summary
CAPITALIZATION SUMMARY • Total Debt of $2.1 billion(1) − Leverage at around 4.1x net debt(1) to LTM June Adjusted EBITDA − No meaningful maturities for the next four+ years • Debt Capitalization: Maturity Rate Outstanding (2) Asset-backed Revolver ($400M) 2025 L+2.25% 45 $1,305 (4) 25 First Lien Ter
Slide 8: Outlook and Guidance
OUTLOOK AND GUIDANCE Affirming 2022 Outlook: • FY 2022 Adjusted EBITDA of $490 million to $510 million • This reflects continued investment activities, including: • Focusing more funding on talent – wages, recruiting, and retention • Investing in innovation to scale adjacent and complementary servic
Slide 9: Thank You
THANK YOU
Slide 10: Non-GAAP Reconciliation (1/4)
NON-GAAP RECONCILIATION (1/4) Three Months Ended Consolidated June 30, 2022 2021 Total Company (in thousands) Net income (loss) $ 3,676 $ 5,754 Add: Interest expense, net 28,188 37,189 Provision for income taxes 1,316 6,563 Depreciation and amortization 58,444 62,674 Equity based compensation of Top
Slide 11: Non-GAAP Reconciliation (2/4)
NON-GAAP RECONCILIATION (2/4) Three Months Ended June 30, 2022 2021 Sales Segment (in thousands) Operating income $ 15,177 $ 44,673 Add: Depreciation and amortization 40,543 44,710 Equity based compensation of Topco(1) (2,032) (678) Stock based compensation expense(2) 9,171 4,730 Fair value adjustme
Slide 12: Non-GAAP Reconciliation (3/4)
NON-GAAP RECONCILIATION (3/4) (in millions) June 30, 2022 Current portion of long-term debt $ 59.8 Long-term debt, net of current portion 2,026.0 Less: Debt issuance costs (45.4) Total Debt 2,131.2 Less: Cash and cash equivalents 115.8 Total Net Debt (10) $ 2,015.4 11
Slide 13: Non-GAAP Reconciliation (4/4)
NON-GAAP RECONCILIATION (4/4) Note: Numerical figures included in this slide have been subject to rounding adjustments (1) Represents expenses related to (i) equity-based compensation expense associated with grants of Common Series D Units of Karman Topco L.P. (“Topco”) made to one of the equityhold